Goldman cuts regional casino revenue outlook on August slowdown

Investing.com -- Goldman Sachs reported that regional casino revenues slowed in August across multiple states, with several major operators seeing declines compared to the prior year.

Iowa's gross gaming revenue fell 13% year-over-year in August, compared to a 6% decline in July. Indiana's revenue dropped 5% in August after growing 3% in July, while Kansas revenue declined 2% in August versus 3% growth in July. Goldman attributed part of the August weakness to calendar shifts including weekend timing and Labor Day.

For Caesars Entertainment (NASDAQ: CZR), six of 11 states with regional properties reported August results, showing revenue down 8% year-over-year for the month. In Iowa, Horseshoe Casino declined 19% and Isle Casino Hotel Waterloo fell 19%. In Indiana, Horseshoe Hammond dropped 30% while Harrah's Hoosier Park and Horseshoe Indianapolis each grew 2% and 1%, respectively.

Penn Entertainment (NASDAQ: PENN) properties in eight of 13 states showed August revenue up 1% year-over-year. Ameristar II in Iowa fell 20%, while Ameristar Casino in Indiana declined 17%. Hollywood Lawrenceburg in Indiana grew 4%, and Hollywood Casino & Resort in Kansas dropped 1%.

Boyd Gaming (NYSE: BYD) properties in six of nine states recorded August revenue down 3% year-over-year. Diamond Jo Worth Casino in Iowa declined 15% and Diamond Jo Dubuque fell 7%. Belterra Casino in Indiana dropped 10%, while Blue Chip Casino rose 5%. Kansas Star Casino & Resort remained flat.

July revenue across most states tracked up 1% year-over-year, following growth of 4% in May and 2% in June.

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